Lahore: Pakistan has received a much-needed break as it teeters on the edge of default when the country finally won a pound 2.37 billion short-term finance package from the International Monetary Fund.
The IMF said it had reached an agreement on the deal with the 220 million nation, which will now be subject to approval by its board in July. The new nine-month standby arrangement was struck hours before a current IMF agreement expires, offering a relief to Pakistan's acute balance of payments crisis.
Prime Minister Shehbaz Sharif said it would put Pakistan "on the path of sustainable economic growth".
Analysts claim that Pakistan's economic crisis may have escalated into a debt default in the absence of the bailout due to the country's sky-high inflation and meagre foreign exchange reserves, which are barely enough for a month's worth of imports.
It was reached only after Sharif held marathon meetings with IMF head Kristalina Georgieva on June 22, which he termed "a turning point". Pakistan will receive formal documents on the deal later, Finance Minister Ishaq Dar said, which he said he would sign.